Adani Ports to acquire a controlling stake in Gangavaram Port for Rs. 3,604 crore

Port: Adani Ports and Special Economic Zone on Tuesday said it will acquire a controlling interest in Gangavaram Port Ltd (GPL) from DVS Raju. And family for Rs. 3,604 crores taking its stake in GPL to 89.6 percent. GPL is located in the northern part of Andhra Pradesh next to Vizag Port.

Moreover, Adani Ports and Special Economic Zone (APSEZ), India’s largest private ports and logistics company. And logistics company and the flagship transportation arm of the diversified Adani Group. Is acquiring the 58.1 percent stake held by DVS Raju and family in Gangavaram Port Limited (GPL), the company said in a statement. The acquisition is valuing at Rs. 3,604 crore.

On the other side, APSEZ had announced the acquisition of Warburg Pincus’s 31.5 percent stake in GPL on March 3rd, 2021. And together with this acquisition, APSEZ would have an 89.6 percent stake in GPL. Ports play a major role in shaping the future.

Through APSEZ’s 89.6 percent stake in Gangavaram port, the Adani Group will greatly expand its pan-India cargo presence. As India’s largest private sector port developer and operator we will accelerate India’s and AP’s industrialization, Adani Group Chairman Gautam Adani said in a tweet.

AP industrialization;

It is the second-largest non-major port in Andhara Pradesh with a 64 MT capacity established. Under a concession from the Government of Andhra Pradesh (GoAP) that extends till 2059. While it is an all-Weather, deep water, multipurpose port capable of handling fully laden super cape size vessels of up to 2,00,000 DWT, the statement said.

Currently, GPL operates 9th berths and has free-hold land of 1,800 acres. With master plan capacity for 250 MTPA with 31st berths. While GPL has sufficient headroom to support future growth. GPL handles a diverse mix of dry and bulk commodities. Including coal, iron ore, fertilizer, limestone, bauxite, sugar, alumina, and steel.

Moreover, GPL is the gateway port for a hinterland spread over states across eastern southern and central India. The statement said adding it will benefit from APSEZ’s pan-India footprint. Karan Adani, CEO and Whole Time Director of APSEZ said.

The associated hinterland we will now be able to tap into is one of the fastest-growing in the eastern region and with the logistic synergies APSEZ brings to the table, GPL has the potential to become a 250 MT port. This will undoubtedly help accelerate the industrialization of AP.